Buying a home is a huge milestone, and if you qualify as a first-time homebuyer, you may have access to exclusive programs that make homeownership more affordable. These programs can provide down payment assistance (DPA), closing cost assistance, and government-backed loans such as FHA, VA, and USDA loans—helping you achieve your dream of homeownership with greater ease.
But how do you know if you qualify as a first-time homebuyer?
What Is a First-Time Homebuyer?
A first-time homebuyer is someone who does not have any ownership interest in a primary residence for the past three years. The great news is that even if you owned a home in the past, you may still qualify for first-time homebuyer programs if you’ve been renting or haven’t owned property during this period.
Here are some specific scenarios that may help determine your eligibility:
1. Owned a Home in the Past but Sold It
If you previously owned a home but sold it more than three years ago, you may still qualify as a first-time homebuyer. As long as you haven’t had any ownership interest in a property during the last three years, you could be eligible for special loan programs and assistance.
2. Own a Rental Property but Rent Your Primary Residence
Even if you own an investment or rental property, you can still be considered a first-time homebuyer—as long as you’ve been renting your primary residence for the last three years. The key factor is that you must not have had ownership interest in the home you live in during this time.
3. Added to a Property Title by Family
Sometimes, parents add their child’s name to their home's title for estate planning purposes. While this may provide a level of security, it can impact first-time homebuyer eligibility. If your name is on the title, you technically have ownership interest in the home, which may disqualify you from first-time homebuyer benefits—unless you can prove you’ve been renting a separate residence.
4. Owning a Mobile Home
If you live in a mobile home that is permanently attached to a foundation, it is classified as real property, meaning it counts as homeownership and may affect your eligibility. However, if your mobile home is not permanently affixed, you may still qualify as a first-time homebuyer.
Why Your First-Time Homebuyer Status Matters
Qualifying as a first-time homebuyer can open the door to lower down payments, better loan terms, and financial assistance to help with the cost of buying a home. These benefits can make homeownership more affordable and accessible, helping you build wealth and stability for the future.
Key Takeaway: Your Primary Residence Matters
The most important factor in determining whether you qualify as a first-time homebuyer is ownership of your primary residence. If you have not had ownership interest in a primary home for the past three years, you may be eligible for first-time homebuyer programs and financial assistance.
If you're ready to explore your homeownership options, now is the perfect time to connect with a mortgage professional who can guide you through the process and help you take advantage of first-time homebuyer benefits!
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